Oil prices drop below $80 as US stock market drifts near all-time highs

Oil prices dropped below $80 per barrel on Tuesday, marking the lowest level since early March, as traders anticipated a potential U.S.-Iran deal to reopen the Strait of Hormuz by the end of the week. The move eased concerns over disrupted global oil flows, with Brent crude settling at $78.96 after a 5.1% decline. Despite lingering uncertainties, including Iran’s nuclear program, Wall Street remains optimistic the agreement could stabilize inflationary pressures worldwide. On Wall Street, the S&P 500 dipped 0.4%, pulling 1.1% below its record set earlier this month, while the Dow Jones Industrial Average climbed 391 points (0.8%) toward another high. The Nasdaq composite fell 0.7%, dragged down by tech stocks tied to artificial-intelligence speculation. Nvidia dropped 1.7% and Micron Technology fell 5.1%, reflecting volatility in AI-driven equities that have become major market influences. SpaceX led gains with an 8.8% rise, its third straight increase since its public debut, after announcing plans to acquire Cursor, an AI coding assistant, for $60 billion. Meanwhile, Yum Brands climbed 2% following its $2.7 billion sale of the Pizza Hut chain, with most restaurants going to private equity firm LongRange Capital and Chinese locations to Yum China Holdings. Robinhood Markets fell 2% after announcing layoffs affecting 10% of its workforce, while Dave & Buster’s Entertainment sank 4.6% after reporting weaker-than-expected quarterly profits. The broader market showed mixed activity, with more stocks rising than falling, though tech sector fluctuations continued to weigh on sentiment. Analysts noted oil prices remain volatile, despite recent declines from over $100 per barrel, as full industry recovery could take months. The tentative U.S.-Iran deal, if finalized, could alleviate supply constraints and ease inflationary pressures globally, though significant hurdles—including nuclear program negotiations—remain unresolved.